Jubilee Metals has gained full control of the Kabwe project, in Zambia, by increasing its interest in the project to 87.5%.
While Jubilee has the option to acquire 100% of the Kabwe project, Aim-listed BMR retains a maximum of 12.5% of the generated earnings.
Through retaining its 29.01% shareholding in BMR, Jubilee therefore has a total effective beneficial interest of about 91.5% in the Kabwe project.
“I am delighted by the execution of the updated shareholders' and operating agreements with BMR. The agreements ensure that Jubilee takes full control of the funding requirements and execution of the Kabwe project,” Jubilee CEO Leon Coetzer said on Monday, adding that the company has been able to ensure that the success of the Kabwe project remains independent of BMR’s financial position.
The company further noted that the expertise of Jubilee’s technical and project execution teams have led to the development of an enhanced process flowsheet for the recovery of both zinc and lead at Kabwe.
The enhanced flowsheet, he explained, allows Jubilee to implement the zinc recovery circuit independently of the lead recovery circuit which provides the technical team with the opportunity to continue refining the lead circuit design without delaying the construction of the zinc circuit.
“I am confident that the team will conclude the enhanced circuit design and project financial parameters by the end of the third quarter," Coetzer said.